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Cybersquatting cases up because of .com

Kevin Murphy, March 23, 2018, Domain Services

The World Intellectual Property Organization handled cybersquatting cases covering almost a thousand extra domain names in 2017 over the previous year, but almost all of the growth came from complaints about .com names, according to the latest WIPO stats.

There were 3,074 UDRP cases filed with WIPO in 2017, up about 1.2% from the 3,036 cases heard in 2016, WIPO said in its annual roundup last week.

That’s slower growth than 2016, which saw a 10% increase in cases over the previous year.

But the number domains complained about in UDRP was up more sharply — 6,370 domains versus 5,374 in 2016.

WIPO graph

WIPO said that 12% of its 2017 cases covered domains registered in new gTLDs, down from 16% in 2016.

If you drill into its numbers, you see that 3,997 .com domains were complained about in 2017, up by 862 domains or 27% from the 3,135 seen in 2016.

.com accounted for 66% of UDRP’d domains in 2016 and 70% in 2017. The top four domains in WIPO’s table are all legacy gTLDs.

As usual when looking at stats for basically anything in the domain business in the last few years, the tumescent rise and meteoric fall of .xyz and .top have a lot to say about the numbers.

In 2016, they accounted for 321 and 153 of WIPO’s UDRP domains respectively, but they were down to 66 and 24 domains in 2017.

Instead, three Radix TLDs — .store, .site and .online — took the honors as the most complained-about new gTLDs, with 98, 79, and 74 domains respectively. Each of those three TLDs saw dozens more complained-about domains in 2017 than in 2016.

As usual, interpreting WIPO’s annual numbers requires caution for a number of reasons, among them: WIPO is not the only dispute resolution provider to handle UDRP cases, rises and falls in UDRP filings do not necessarily equate to rises and falls in cybersquatting, and comparisons between .com and new gTLDs do not take into account that new gTLDs also have the URS as an alternative dispute mechanism.

ICANNWiki fans protest funding cut

Kevin Murphy, March 11, 2018, Domain Policy

ICANN should continue to fund the independent ICANNWiki project, according to high-profile industry supporters.

As I first reported back in December, ICANN plans to stop giving a $100,000 annual grant to ICANNWiki, a repository of about 6,000 community-sourced articles on the people and organizations involved in the ICANN community.

While ICANNWiki does not merit an explicit mention in ICANN’s latest proposed budget, both organizations have confirmed to DI that the funding is for the chop, as ICANN attempts to rein in spending in the face of depressed revenue.

About a quarter of the 41 comments filed on the budget express support for the wiki.

Consultant Kurt Pritz, a 10-year veteran of ICANN and one of the key architects of its new gTLD program, wrote that the wiki “has been an essential part of the ICANN culture for many years… often saving ICANN meetings from terminal ennui.”

Roland LaPlante, chief marketing officer of Afilias (one of about 15 sponsors listed on ICANNWiki’s front page), wrote:

The complete withdrawal of funding from ICANN so abruptly not only threatens the viability of the project, but rather disrespectfully junks the valuable time and resources that the community has invested over the years. Ultimately the loss of ICANNWiki would be a loss to our overall sense of community.

ICANN should continue to support ICANNWiki at a reasonable level in the next fiscal year. At a minimum, please consider giving the team time to find other sources of funding.

Sandeep Ramchandani, CEO of Radix, concurred, writing:

ICANNNWiki benefits the entire ICANN community. Cutting the funding entirely would effectively halt its operations and be a disservice to the community it serves. It is in ICANN and the community’s best interest to continue funding it in an amount that works for ICANN long-term, and provide ICANNWiki sufficient time to develop a more sustainable business plan.

Simon Cousins, CEO of Chinese market localization specialist Allegravita, said:

Before ICANNWiki, there was precious little information on industry fundamentals in China, and since Allegravita has supported the pro-bono translation of ICANNWiki content into Chinese, the vital platform that is ICANNWiki has been acknowledged hundreds of times.

We do not support the immediate and full withdrawal of funding for ICANNWiki. We guardedly support incremental, annual decreases to give ICANNWiki the time necessary to generate new sponsorship income to cover their costs.

Pablo Rodriguez of .pr ccTLD operator PRTLD, host of ICANN 61 and an ICANNWiki sponsor, wrote:

We believe that they should not be cut out from the ICANN’s Budget, instead, they should be supported and embraced to continue their engaging approach and work with ICANN’s Community and as well newcomers, veterans, special programming for beginners and others in order to deliver what is ICANN and what does the organization do and so forth.

Several other commentators on ICANN’s budget asked ICANN to maintain the funding and I was unable to find any comments supporting its withdrawal.

It’s worth noting that ICANN’s $100,000 is not ICANNWiki’s only financial support. It says it receives an additional $61,000 a year from corporate sponsorship, and as a wiki much of its output is produced by volunteers.

It has been in existence for a decade, but ICANN has only been giving it money for three years.

The costs associated with running it appear to be mostly centered not on maintaining the web site but on its outreach and promotional activities, such as attending meetings and the popular caricatures and card decks it distributes.

It could be argued that ICANNWiki is pretty good value for money when compared to cost of a dedicated outreach professional (the average cost of an ICANN staffer has been estimated at $175,000+ in the latest budget).

ICANNWiki will host an “Edit-A-Thon” during the current ICANN 61 public meeting in San Juan, Puerto Rico on Tuesday at 0900 local time.

Ramchandani promoted to Radix CEO

Kevin Murphy, January 15, 2018, Domain Registries

New gTLD registry Radix has appointed long-time business head Sandeep Ramchandani as CEO.

He’s replacing Bhavin Turakhia, who is CEO of parent company Directi and executive chairman of Radix.

Ramchandani had a lot of autonomy as business head and VP of the company and, in my view, has been basically CEO in all but name for years. I’ve accidentally called him CEO in the pages of DI more than once.

In a press release, he said: “Just as the first few years of Radix were about demonstrating proof of concept, the next few will be about growing awareness and delivering accelerated growth. We are also actively looking to acquire more TLD assets to reach newer segments of the market while leveraging economies of scale.”

The company has a portfolio of nine gTLDs, including .website, .store and .online, and recently announced that its 2017 revenue topped $12 million.

Radix says it’s profitable after making $12 million this year

Kevin Murphy, December 13, 2017, Domain Registries

New gTLD stable Radix said today that it expects to top $12 million in revenue this year.

The company also told DI that it is currently profitable.

Radix, which counts the likes of .site and .store among its portfolio of nine active gTLDs, said revenue so far for the calendar year has been tallied at $11.7 million.

The company said that more than half of revenue came from “non-premium domain renewals”, an important metric when considering the long-term health of a domain business.

Recurring revenue of non-premiums was almost twice as much as new registrations, Radix said. Only $1.76 million of revenue came from premium sales (14%) and renewals (86%).

The US accounted for just under half of revenue, with Germany at 14.4% and China, where .site was fully active for the whole year and four other TLDs were approved in October, coming in at 7.7%.

Radix is a private company, part of the Directi Group, and has not previously disclosed its financials.

Assuming apples-to-apples comparisons are valid (which may not be the case), its figures compare favorably to public competitors such as MMX, which expects to report 2017 in the same ball-park despite having more than twice as many gTLDs under management.

Radix claims 77% renewal rates after two years

Kevin Murphy, November 14, 2017, Domain Registries

New gTLD registry Radix says that three of its larger TLDs have seen a 77% renewal rate two years after launch.

The company said today that .online had 75% renewals, with .tech at 78% and .site at 81%.

It appears to have carved out these three from its portfolio for attention, ignoring the rest of its portfolio, because they all went to general availability in the same two-month period July and August 2015.

The renewal rates are for the first month of GA. In other words, 77% of the domains registered in the TLDs’ respective first month have been renewed for a third year.

Radix, in a press release, compared the numbers favorably to .com and .net, which had a combined renewal rate of 74% in the second quarter according to Verisign’s published numbers.

It’s probably not a fully fair apples-to-apples comparison. Domains registered in the first month of GA are likely higher-quality names registered by in-the-know early adopters, and therefore less likely to be dropped, whereas .com and .net have decades of renewal cycles behind them.

Radix also said that 86% of domains registered during the three TLDs’ sunrise periods and Early Access Periods are still being renewed, with .tech at 92% and .site at 88%.

Eight more gTLDs get Chinese licenses

Kevin Murphy, October 12, 2017, Domain Registries

Radix and MMX have had four new gTLDs each approved for use in China.

MMX has had .work, .law, .beer and .购物 (Chinese for “shopping”) approved by the Ministry of Industry and Information Technology.

Radix gained approval for .fun, .online, .store and .tech.

The approvals mean that Chinese customers of Chinese registrars will be able to actually use domains in these TLDs rather than just registering them and leaving them barren.

It also means the respective registries have to apply more stringent controls on Chinese registrants.

They’re the first new gTLDs to get the nod from MIIT since April.

Only a couple dozen Latin-script new gTLDs have been given regulatory approval to operate fully in China.

MMX’s biggest success story to date, .vip, is almost entirely beholden to the Chinese market. Before today, it was also the only gTLD in its portfolio to pass the MIIT test.

The company said in a statement it has another four strings going through the approval process.

Radix already had .site on sale in China with government approval.

Google shifts 400,000 .site domains

Kevin Murphy, August 22, 2017, Domain Registries

Google has given away what is believed to be roughly 400,000 subdomains in Radix’s .site gTLD as part of a small business web site service.

Since its launch a couple of months ago, the Google My Business web site builder offering has been offering small businesses a free one-page site with a free third-level domain under business.site.

Google My Business also offers users the ability to upgrade to a paid-for second-level domain via its Google Domains in-house registrar.

Google the search engine indexes 403,000 business.site pages currently. Because each subdomain is limited to a single page, it is possible that the number of subdomains is not too far behind that number, Radix believes.

This means that business.site is likely almost as large as the .site gTLD itself, which currently has about 450,000 names in its zone file.

Given the rapid growth rate, it seems likely the subdomain will overtake the TLD in a matter of weeks.

According to Radix, business.site was purchased off of its registry reserved premium list. The sale price has not been disclosed.

It’s good publicity for the TLD, and merely the latest endorsement by Google of the new gTLD concept.

As well as being the registry for many new gTLDs, Google parent Alphabet uses a .xyz domain and its registrar uses a .google domain.

EFF recommends against new gTLDs

Kevin Murphy, July 28, 2017, Domain Policy

The Electronic Frontier Foundation has recommended that domain registrants concerned about intellectual property “bullies” steer clear of new gTLDs.

The view is expressed in a new EFF report today that is particularly critical of policies in place at new gTLD portfolio registries Donuts and Radix.

The report (pdf) also expresses strong support for .onion, the pseudo-TLD available only to users of the Tor browser and routing network, which the EFF is a long-term supporter of.

The report makes TLD recommendations for “security against trademark bullies”, “security against identity theft and marketing”, “security against overseas speech regulators” and “security against copyright bullies”.

It notes that no one TLD is “best” on all counts, so presents a table explaining which TLD registries — a broad mix of the most popular gTLD and ccTLD registries — have which relevant policies.

For those afraid of trademark “bullies”, the EFF recommends against 2012-round new gTLDs on the basis that they all have the Uniform Rapid Suspension service. It singles out Donuts for special concern due to its Domain Protected Marks List, which adds an extra layer of protection for trademark owners.

On copyright, the report singles out Donuts and Radix for their respective “trusted notifier” schemes, which give the movie and music industries a hotline to report large-scale piracy web sites.

These are both well-known EFF positions that the organization has expressed in previous publications.

On the other two issues, the report recommends examining ccTLDs for those which don’t have to kowtow to local government speech regulations or publicly accessible Whois policies.

In each of the four areas of concern, the report suggests taking a look at .onion, while acknowledging that the pseudo-gTLD would be a poor choice if you actually want people to be able to easily access your web site.

While the opinions expressed in the report may not be surprising, the research that has gone into comparing the policies of 40-odd TLD registries covering hundreds of TLDs appears on the face of it to be solid and possibly the report’s biggest draw.

You can read it here (pdf).

China approves more Donuts, Afilias gTLDs

Donuts and Afilias have had two batches of new gTLDs approved for use in China.

The Ministry of Industry and Information Technology approved five Afilias TLDs and six Donuts TLDs last month. This means customers of Chinese registrars will now be able to legally use those names in China.

Afilias was approved for .info, .mobi and .pro, which were delegated following the 2000 and 2003 new gTLD application rounds and .kim and .red from the 2012 round.

Donuts simultaneously was cleared for .ltd, .group, .游戏 (“game”), .企业 (“business”), .娱乐 (“entertainment) and .商店 (“store”).

The approvals more than double the number of new gTLDs in Latin script to get the nod from MIIT, in what now appears to be a monthly occurrence.

In February, .ink and four Chinese-script TLDs passed the regulatory process, following .site and .shop in January and .vip, .club and .xyz in December.

MIIT approval means the chance of usage by Chinese registrants should go up, but it also ties these Western registries to relatively Draconian government policies when it comes to Chinese registrations.

ICANN reveals $500 million gTLD buyback program

Kevin Murphy, April 1, 2017, Domain Services

ICANN is to spend its half-billion dollar auction war chest on a buyback program for failing new gTLDs, DI can reveal.

Inspired by the “Cash for Clunkers” program that provided stimulus during the economic downturn in the US a decade ago, the new program will see ICANN offer $1 million per gTLD to any registry whose heart simply isn’t in it any more.

The scheme will work rather like a stock buyback, ICANN explained in a 489-page document (PDF).

Registries opting to sell back their gTLDs will see their strings abruptly removed from the DNS root and their contracts torn up and burned on a great big bonfire.

Any domains registered in these gTLDs will stop resolving to parking pages immediately.

“We believe this program offers the most equitable distribution of auction funds and the fairest way to ensure new gTLD program participants see a return on their investment,” ICANN chair Steve Crocker said in a statement.

Portfolio registries including Donuts, Uniregistry, MMX, Radix and XYZ.com are already believed to have expressed an interest in the scheme, and were already forming a disorderly queue outside ICANN’s Los Angeles headquarters last night.

While Verisign also qualifies for the program, much of the funding will be provided by the $130 million it spent at the .web auction.

The company said it welcomed the deal and plans to sell .web back to ICANN as soon as possible. It added that it will cover the $129 million loss by fueling its data center generators with ten-dollar bills, rather than twenties, for the first three weeks of April.

But registrant groups were outraged by the proposal, which will see millions of domain names erased from the internet.

Dr General President Colonel Lucky Mfwamba (Esq), chair of the New gTLD Registrants Association, said he expects the bottom to fall out of the penis enlargement market overnight.

And in China, thousands of domain investors flocked to forums to complain that the randomly generated domains they bought at $0.20 each and hoped to sell to other investors for $0.30 each are suddenly worthless.